Cash segment margins may ease as SEBI panel backs rationalisation proposal: Report
SEBI data suggests that, in November 2025, the combined Average Daily Turnover (ADT) in the cash segment stood at Rs 1.13 lakh crore.
- Jan 13, 2026,
- Updated Jan 13, 2026 2:41 PM IST
A panel appointed by the Securities and Exchange Board of India (SEBI) has reportedly given the green light to rationalise margin requirements.
According to a report by Moneycontrol, the proposal aims to encourage higher volumes in the cash segment, with the final decision now resting with the market regulator.
Sources familiar with the development told the publication that while the panel have consented to reviewing and rationalising the existing margin system, they have emphasised a prudent approach. The consensus suggests that while easing is necessary, a fair amount of margin must still be maintained to ensure systemic risks remain well-covered.
The panel has reportedly advised that margins should not dip below the 12.5 per cent mark. Currently, the combined Value at Risk (VaR) and Extreme Loss Margin (ELM) for a majority of stocks hover between the 12.5 to 20 per cent range.
SEBI data suggests that turnover in the equity cash segment declined by 4.2 per cent at the NSE and 2 per cent at the BSE in November 2025 compared to the October month.
SEBI data suggests that, in November 2025, the combined Average Daily Turnover (ADT) in the cash segment stood at Rs 1.13 lakh crore, a 5.3 per cent increase over the same period last year.
However, an immediate rollout may not be on the cards. A source indicated to Moneycontrol that SEBI will likely conduct rigorous ‘back testing’ of data and engage in consultations with clearing corporations, exchanges, and other stakeholders before cementing a view.
This proposal is reportedly part of a broader bouquet of suggestions SEBI has received to invigorate the cash market. These include strengthening the Securities Lending and Borrowing Mechanism (SLBM), boosting Exchange Traded Funds (ETFs), and potentially reviewing the Securities Transaction Tax (STT) on intraday trades.
Moneycontrol noted that an email sent to SEBI regarding the issue remained unanswered. Business Today, however, could not independently verify the claim.
A panel appointed by the Securities and Exchange Board of India (SEBI) has reportedly given the green light to rationalise margin requirements.
According to a report by Moneycontrol, the proposal aims to encourage higher volumes in the cash segment, with the final decision now resting with the market regulator.
Sources familiar with the development told the publication that while the panel have consented to reviewing and rationalising the existing margin system, they have emphasised a prudent approach. The consensus suggests that while easing is necessary, a fair amount of margin must still be maintained to ensure systemic risks remain well-covered.
The panel has reportedly advised that margins should not dip below the 12.5 per cent mark. Currently, the combined Value at Risk (VaR) and Extreme Loss Margin (ELM) for a majority of stocks hover between the 12.5 to 20 per cent range.
SEBI data suggests that turnover in the equity cash segment declined by 4.2 per cent at the NSE and 2 per cent at the BSE in November 2025 compared to the October month.
SEBI data suggests that, in November 2025, the combined Average Daily Turnover (ADT) in the cash segment stood at Rs 1.13 lakh crore, a 5.3 per cent increase over the same period last year.
However, an immediate rollout may not be on the cards. A source indicated to Moneycontrol that SEBI will likely conduct rigorous ‘back testing’ of data and engage in consultations with clearing corporations, exchanges, and other stakeholders before cementing a view.
This proposal is reportedly part of a broader bouquet of suggestions SEBI has received to invigorate the cash market. These include strengthening the Securities Lending and Borrowing Mechanism (SLBM), boosting Exchange Traded Funds (ETFs), and potentially reviewing the Securities Transaction Tax (STT) on intraday trades.
Moneycontrol noted that an email sent to SEBI regarding the issue remained unanswered. Business Today, however, could not independently verify the claim.